Low volume -- smaller cap stocks

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drukes1234

It seems to me that the lower volume stocks, usually under $10 tend not to be very susceptible to the overall market as larger cap stocks. For instance the dow could give up 100 pts on a day and that wouldn't really effect the lower volume stocks. Am I right about this or have I just looked at a unique few situations?

Thanks
 
Institutional investors, as a rule, don't bother with "cheapie" stocks. The lack of correlation to the primary benchmarks is indicative of apathy. If a cheapie stock bears no correlation to a small-cap index, then nobody really, really gives a hoot.
 
lets see you top those stats with a large cap
also trades right near book value i believe
and just open new division in europe...
small caps rock imo
 
Quote from drukes1234:

It seems to me that the lower volume stocks, usually under $10 tend not to be very susceptible to the overall market as larger cap stocks. For instance the dow could give up 100 pts on a day and that wouldn't really effect the lower volume stocks. Am I right about this or have I just looked at a unique few situations?

Thanks
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Dude, most of the stocks have little correlation with what the Dow/S&P futures are doing nowdays. Besides the day trader effect, there is little institutional/retail buying & selling that goes with the market moves. The lower volume stocks 100k-500k daily, no matter the price, have little relation to the market anyway if they have their own thing going on. At least besides the daytraders panicking with every sharp move in the futures (anything over 1 handle in either direction)
 
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